Transcript WORLD BANK Islamic Republic of Iran Information Seminar

WORLD BANK
SELECTION
OF
CONSULTANT
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SELECTION OF
CONSULTANT
BASIC PRINCIPLES
 High quality services
 Economy and efficiency
 Fair selection process
 Encourage role of national consultants
 Transparency
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SELECTION OF CONSULTANT
MAIN FEATURES
 Eligibility
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Firms or any affiliates engaged as a consultant should
disqualify from subsequently providing goods or works
except in turn-key contracts
Government owned enterprises in the borrower country
are eligible only if they are legally autonomous and
operate under commercial law
Dependent agencies including institutions and universities
of borrowers or sub-borrowers and their employees are
not allowed to participate
Government employees cannot be financed under Bank
projects
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SELECTION OF CONSULTANT
CONFLICT OF INTEREST
 Suppliers of goods and contractors for civil
works and any of their affiliates excluded from
providing consulting services for the same
project (except for turn-key contracts)
 Consultants providing services for preparation
or implementation of a project, and any of their
affiliates, are disqualified from subsequently
providing goods or works or services related to
initial assignment (other than a continuation of
the consultant’s earlier consulting services) for
the same project
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SELECTION OF CONSULTANT
FRAUD AND CORRUPTION
 Corrupt and fraudulent practices are
unacceptable
 Sanctions by bank:
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Will reject proposal for award
Cancel the portion of the loan
Declare firm ineligible for a limited period of
time or indefinitely
Bank reserves the right to audit firm’s
accounts and records of the contract
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SELECTION OF CONSULTANT
ASSOCIATION BETWEEN FIRMS
Firms may associate with each other to
complement areas of expertise in form of
joint venture or sub-contracting. In joint
venture, all members are jointly and
severally liable for the entire scope.
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SELECTION OF CONSULTANT
BANK GUIDELINES
Public notification of large assignments
Restricted competition
Use of request for proposals (RFP)
Different selection methods applicable
as specified in Loan Agreement
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SELECTION OF CONSULTANT
SELECTION CRITERIA
Basis of selection
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Competition among short-listed firms
Selection Method (quality and cost are factors)
Relative weights (quality & cost-total 100 points)
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Use cost factor judiciously depending on nature of assignment
Quality usually 80-90 out of 100 points
Cost usually 10-20 but not more than 30 out of 100 points
Break-down of quality points
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Consultants specific experience
Methodology
Key personnel
Transfer of knowledge
Participation by nationals
5-10 points
20-50 points
30-60 points
0-10 points
0-10 points
100
points
Minimum technical score to qualify--70 to 80 points
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SELECTION OF CONSULTANT
SELECTION STEPS
Advertisement
Preparation of shortlist
Request for proposal
Submission and opening of proposals
Evaluation
 Technical
 Financial
Negotiations and award
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SELECTION METHODS
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Quality and cost based selection (QCBS)
Quality based selection (QBS)
Fixed budget (FB)
Consultant qualifications, firms (CQ) – Yes
Aggregate US$ 0.3 M
 Least cost (LC) - Yes
 Single source (SS)
 Individual consultants (IC) – Yes
Aggregate US$ 0.3 M
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SELECTION METHODS
QUALITY AND COST BASED
SELECTION
(QCBS)
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SELECTION OF CONSULTANT
QCBS STEPS
 Prepare TOR
 Prepare cost estimate
 Advertising:
 GPN in UNDB for all contracts by short-list procedure (required)
 For contracts estimated more than $200,000 in addition to GPN
 Specific advertising for expression of interest in UNDB (required)
 Advertising in an international newspaper or technical magazine
(optional)
 Copy of notice should be sent to those who expressed interest in
response to GPN (required)
 Contact embassies, professional organizations or firms listed in
DACON (optional)
 Time allowed to respond - not less than 30 days
 Use Bank standard form(s) of advertising
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SELECTION OF CONSULTANT
QCBS STEPS
 Short list
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First consideration to those who expressed interest to SPN
Number -- 3 to 6 firms with wide geographic spread
Nationality (country in which registered/ incorporated) not more than 2
firms from one country
At least one firm from developing country (if qualified)
After Bank’s no-objection of short list no changes permitted without
Bank’s concurrence
 Preparation and issuance of request for proposal (RFP)
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Use Bank’s standard RFP comprising of 1) LOI; 2) information to
consultant (ITC); 3) TOR; And 4) draft contract
After Bank’s no-objection any changes require Bank’s concurrence
RFP should indicate estimated staff months and not budget
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SELECTION OF CONSULTANT
QCBS STEPS
 Receipt of proposals
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Time allowed to submit proposals -- 4 to 12 weeks depending on
assignment -- generally 6 weeks
Clarifications requested by firms should be provided during preproposal stage and sent to all those short listed
Deadline for submission strictly observed
Late proposals are to be returned unopened
Two envelope procedure used -- technical and price proposals in separate
sealed envelopes
Only technical proposals are opened first by evaluation committee
immediately after the submission time
Price envelopes remain sealed and deposited in an independent place
until technical evaluation is completed and Bank’s no-objection to open
price proposal obtained
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SELECTION OF CONSULTANT
QCBS STEPS
 Evaluation of proposals -- technical
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Evaluation committee -- 3-5 specialists in the sector acceptable to the Bank
Each member evaluates independently
Follow criteria and sub-criteria specified only in the RFP
Determine responsiveness to TOR
Determine combined score of all evaluators
Seek Bank’s no-objection (use standard evaluation report format)
Notify those who failed to score the minimum marks that their price
proposals will be returned unopened after selection is completed
Notify those who pass about date and time of opening of financial
proposals (allow 2 weeks)
Public opening of financial proposals
Read allowed names, technical scores, and prices
Prepare minutes of public opening and send copy to Bank
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SELECTION OF CONSULTANT
QCBS STEPS
 Evaluation of proposals --Financial
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Committee evaluates financial proposals as per formula specified in RFP
Arithmetical correction
Currency conversion to single currency
Cost comparison will include all reimbursables but exclude local taxes
 Evaluation of proposals -- combined score
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Seek no objection from Bank (use standard evaluation report format)
 Negotiations and contract award to the highest ranked firm after
Bank’s no-objection
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Unit rates not subject to negotiations
No major changes in TOR is permitted
Staff substitution not permitted within proposal validity unless critical to
meet objective or undue delays
Proposal may be disqualified if key staff were offered without confirming
their availability
Draft of negotiated contract must be cleared with Bank before signing 16
SELECTION OF CONSULTANT
LEAST COST SELECTION
 RFP Indicates estimated staff months
 Two envelope procedure is adopted
 Proposal receipt, opening, and technical evaluation as per
QCBS
 Opening of financial proposals above a minimum technical
score
 Award to the lowest evaluated price proposal
 Bank’s prior review and clearance required for RFP, technical
evaluation before financial opening, final selection before
negotiation and draft contract before signing
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SELECTION OF CONSULTANT
CONSULTANT QUALIFICATION
 For very small value (<$100,000) for which preparation and
evaluation of competitive proposals may not be justified
 Prepare TOR
 Solicit expressions of interest
 Prepare short list
 Select firm most qualified
 Selected firm to submit combined technical and financial
proposals
 Negotiate contract
 Bank review as per loan/credit agreement
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SELECTION OF CONSULTANT
Individual Consultant
 Use when
 No teams required
 No backup support required
 Experience and qualifications paramount
 Selection
 Qualifications
 Interviews
 Conflict of interest
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EVALUATION OF CONSULTANT
EXAMPLE - TECHNICAL EVALUATION
CRITERIA (100 points)
 Specific experience (10 points)
 Methodology (30 points)
 Key professional staff (50 points)
 Transfer of Knowledge (10 points)
 Local participation (0 points)
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TECHNICAL EVALUATION
SUMMARY EVALUATION SHEET
(EXAMPLE)
FIRM I
ITEM
a
FIRM II
FIRM III
WT POINTS RATING POINTS RATING POINTS RATING
b*
aXb
c*
aXc
d*
aXd
1. EXPERIENCE
0.10
80
8
90
9
75
7.5
2. METHODOLOGY
0.30
70
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75
22.5
90
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TEAM LEADER
0.20
75
15
70
14
80
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ECONOMIST
0.10
60
6
65
6.5
60
6
ENGINEER
0.10
80
8
70
7
80
8
FINANCIAL ANLST.
0.05
70
3.5
60
3
60
3
MANAGEMENT EXP.
0.05
60
3
70
3.5
80
4
4. SKILLS TRANSFER
0.10
50
5
60
6
70
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3. KEY STAFF
TOTAL
* OUT OF 100
1
69.5
71.5
78.5
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FINAL EVALUATION
(EXAMPLE)
FIRM
TECHNICAL
EVAL.
POINTS
X90%
(A)
PRICE
(US$M)
PRICE
X10%
POINTS* (B)
TOTAL
SCORE
(A+B)
A
92
82.80
.90
77.78
7.80
90.58
B
90
81.00
.80
IF .70
87.50
8.75
(10.00)
89.75
(91.00)
C
85
76.50
.73
95.89
9.59
86.09
D
78
70.20
.70
100.00
10.00
80.20
* LPX100/FP WHERE FP = FIRM PRICE AND LP = LOWEST PRICE
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NEGOTIATIONS
 Sequence
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Technical negotiations
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Methodology and staffing
Final TOR
Staffing schedule
Client inputs
Consultant outputs
Activity schedule
Skills transfer
Financial negotiations
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Staff month rates (price not an evaluation factor)
Reimbursable costs
(foreign & local)
Surveys, equipment
Payment schedules
Transportation
Housing and offices
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SAMPLE BREAKDOWN OF
MONTHLY RATES*
(Based on audited statements)
NAME POSITION
BASIC
SOCIAL OVERSALARY CHARGES HEAD
SUBFEE ALLOW- TOTAL MULTITOTAL
ANCE
FEE
PLIER
**
-----
----------
2000
1500
2000
5500
1000
1000
7500
3.75
-----
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3000
1500
2000
6500
1000
---
7500
2.50
* IN LOCAL OR FOREIGN CURRENCY UNITS
** MULTIPLIER = TOTAL FEE/BASIC SALARY
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SAMPLE OVERHEAD
(BUSINESS COSTS OF FIRM)
 OFFICE RENT/AMORTIZATION
 OFFICE UTILITIES
 ADMINISTRATIVE SALARIES *
 NON-BILLABLE SALARIES *
 PRINTING & REPRODUCTION
 COMPUTER COSTS
 TRANSPORT
 DONATIONS
 BUSINESS DEVELOPMENT
 DEPRECIATION
 AUDITING
 INSURANCE
 COMMUNICATIONS
 INTEREST
 TAXES
 PERSONNEL DEVELOPMENT
*Includes social charges
PERCENTAGE OF SALARY
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8
16
15
4
8
6
TOTAL
1
128
17
7
2
7
12
3
2
4
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SAMPLE SOCIAL COSTS*
•
•
•
•
•
•
VACATIONS (15 DAYS)
SICK LEAVE (10 DAYS)
MATERNITY LEAVE
SOCIAL SECURITY
PENSION PLAN
INSURANCE
PERCENTAGE OF SALARY
6.6
4.4
3.0
20.0
15.0
– MEDICAL
– ACCIDENT
– LIFE
4.3
2.0
2.9
TOTAL
* NOT INCLUDED
–
NON-BILLABLE TIME
–
THIRTEENTH MONTH
58.2
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SELECTION OF
CONSULTANT
TYPES OF CONTRACTS
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Lump sum
Time-based
Retainer and/or contingency fee
Percentage
Indefinite delivery
Individual
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SELECTION OF
CONSULTANT
IMPORTANT CONTRACT PROVISIONS
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Currency
Payment provisions
Bid and performance securities
Borrower’s contributions
Conflict of interest
Price adjustment
Professional liability
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SELECTION OF
CONSULTANT
IMPORTANT CONTRACT PROVISIONS
 Staff substitution
 Applicable law
 Dispute resolution
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SELECTION OF
CONSULTANT
COMMON PROCUREMENT ISSUES
 Short list
 Selection procedure (QCBS, QBS, fixed budget, least cost,
qualification, single source, etc)
 Use of appropriate form of contract
 Conflict of interest
 Sole source justification
 Selection under trust funds and continuation
 Repeated extensions (sole source)
 Services solicited without contract signature
 Hiring of individuals by PIU and their eligibility
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